The auction method of buying and selling property has existed for centuries. However, it’s still not the most common or “traditional” method of buying or selling real estate in the United States.
The truth is: auctions offer more advantages to both the buyer and seller than traditional sales methods. In case you want to know exactly how delving into the auction world could help you, here are some ways that they benefit both the seller and the buyer:
Advantages for the Seller
– Competition – When involved in real estate auctions, or any sort of auction, a bidding war can really help the seller. The only way to win at auction is to bid more money than everyone else, so in these instances the seller gets a really good price for the product.
– Quick Sale – Auctions offer the opportunity to close the sale almost immediately. Anyone who has worked in real estate knows how long the process can be, which hurts both the buyer and seller. With auctions, you can close on a house in as soon as thirty days!
– Properties in any condition can sell – With an auction, you could sell a brand new house or a property that should be condemned. Because the product drives the sale, supply truly meets demand at auction, you know that you’ll get the true market value for the property and, therefore, you can move a home, car or baseball card, regardless of condition with the assurance that you received the best price possible.
Advantages for Buyer
– Education of Good Prices – By attending an auction for something that they are in the market for, buyers can understand the range of how much something is actually worth. As people become more tentative to bid, you know that the price is approaching the actual worth of the real estate or personal property. As you attend more auctions, you can get better at knowing how to bid.
– True Market Value – Similar to the above point, you get a good feel for the true market value of a property—in fact, properties at auction will only sell for the true market value (the reality of what it is worth) due to the very nature of selling where supply meets demand.
– Sale is Final and Legally Binding – When the auctioneer says, “sold,” both the seller and the buyer can’t renege. The auctioneer has bound the two together by contract. This means that, at the end of the day, you own the property if you’re the winning bidder. That makes for financial peace of mind and comfort for both the buyer & seller in knowing that a fair sale has transpired.